Chapter 4 - Broker Supervision

Question 1

Define Real Estate Broker

Answer 1

Any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, lists, sells or offers to sell, buys or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activities.

Question 2

Name 7 exemptions of those who do not need a real estate license.

Answer 2

1. Owner of Property
2. Attorney-in-Fact - authorized to finalize a contract.
3. Attorney - performing legal duties
4. Resident Managers @ apartments
5. EE’s of Govt Body or Corp that acquire easements, rights-of-way, leases, permits and licenses.
6. Those who obtain property via eminent domain
7. Resident of an Apartment given a referral fee

Question 3

How are Trade Names handled in brokerage shops?

Answer 3

Must be registered with the OREC. OREC licenses only the entities.

Question 4

What kind of entities can the OREC license?

Answer 4

1. Corporation - w/a Managing Broker
2. “Association” or LLC - w/a Managing Broker/Member
3. Partnership - must have 2 Managing Brokers

Question 5

Can a broker be a managing broker for more than one entity?

Answer 5

Yes, if the entities reside at the same location.

Question 6

What is the required continuing education for brokers & associates?

Answer 6

21 hours per year.

Question 7

What is the Broker responsible for?

Answer 7

All acts of their associates AND associate’s licensed or unlicensed assistants.

Question 8

What are the 5 requirements of a Trust Acccount

Answer 8

1. Held in a financial institution where deposits are insured by govt.
2. Be in the name of the broker as it appears on license.
3. Be set up as an escrow or trust account
4. Be maintained as a depository for monies belonging to others.
5. Broker must be signor to account

Note: all trust accounts must be registered with OREC.

Question 9

Each broker shall maintain a special room within their place of business for what purpose?

Answer 9

To display the broker’s license and all licensees associated with the broker.

Question 10

When an associate leaves the broker, the broker must notify the Real Estate Commission within how many days?

Answer 10

10 days

Question 11

When a complaint is filed with the OREC against a licensee, the licensee must respond within how many days?

Answer 11

15 days

Question 12

What happens if a provisional sales associate does not complete their 45 clock-hour postlicense course requirement prior to their one-year license expiration date

Answer 12

They will not be allowed to renew their license and they will have to start over as an original applicant.

Question 13

A person shall not be permitted to file an application for reissuance of a license after revocation of the license within how long?

Answer 13

3 years of the effective date

Question 14

To change the name of an entity such as a corporation, association or limited partnership, the change will cost

Answer 14

$25 per license

Question 15

Real estate records must be maintained and kept for at least

Answer 15

5 years

Question 16

If you are on inactive status, what must you do?

Answer 16

Must disclose you are licensed when buying and selling.

Question 17

What are Payments from the recovery fund for claims limited to?

Answer 17

$50,000 for all claims against one licensee.

Question 18

To keep a real estate license on inactive status, a licensee will be required to

Answer 18

pay a reduced licensing fee and no continuing education is required.